Cost Considerations of Owning a Vehicle
Not only do you have to buy the vehicle itself, either with cash or through financing, there are additional costs such as car insurance, maintenance, gas, registration fees, and more. It just doesn’t seem to end. Read our blog to learn more.
Owning a vehicle can add up to be quite the investment. Not only do you have to buy the vehicle itself, either with cash or through financing, there are additional costs such as car insurance, maintenance, gas, registration fees, and more. It just doesn’t seem to end.
Let’s break down the specific cost considerations:
Vehicle Cost. The cost of the vehicle will depend on buying new or used, the number of miles, brand, year, and more. If you decide to pay for the vehicle in cash, you’ve saved yourself the additional monthly payments to your budgeted expenses and the potential of high interest costs from financing. Buying in cash financially hurts more at the beginning, but the peace of mind and long term potential cost avoidance is worth it if you’re able to purchase in cash.
Registration, Tax & Other Fees. Registration fees occur on a yearly basis and are used to support and fund the state DMV and other transportation agencies. Another yearly tax is your personal property tax in which your vehicle is included too. Parking fees should also be considered, especially if you live in a big city.
Car Insurance. Insurance can be paid on a monthly or yearly basis, where large savings can be obtained from paying one lump yearly sum. Insurance rates vary depending on gender, age, number of accidents and traffic violations, coverage, the age and model/brand of the vehicle, and other factors. You can save substantially by only purchasing liability, in lieu of full coverage, but you run the risk of no coverage on your vehicle in the instance that you’re at fault for an accident.
Gas. Gas prices are extremely variable, depending on the demand of oil and the overall state of the economy. The total amount spent on gas is also dependent on the quality of gas your vehicle requires (i.e. regular, plus, diesel) since prices vary depending on fuel grade.
Maintenance & Repairs. Regular maintenance is essential to increasing the longevity of your vehicle. Many new vehicles or lightly used vehicles, usually bought directly from the dealership, come with a warranty that emcompasses a certain range and number of repairs. After that warranty is null or you purchase a vehicle with an expired warranty, you’ll likely want to find a trusted auto shop near you to perform maintenance and repairs.
We hope that we can be that auto shop for you! Bring your vehicle in today, and we’d be happy to help you invest in your vehicle’s safety, longevity, and performance.